KARACHI: Under the supervision of Director-General Zulfikar Ahmad Chaudhry Post Clearance Audit (PCA) South has detected another EFS fraud perpetrated by M/s Deenar Industries Pvt Ltd for causing loss of Rs478 million to national kitty.
According to details, DG PCA Zulfikar Ali Chaudhry directed Director South, Sheeraz Ahmed, to probe allegations of the misuse of the export facilitation regime by the fraudulent EFS user of metal scrap sector.
During scrutiny based on available customs and sales tax data, several discrepancies came to light. These irregularities prompted a physical inspection of the factory premises on December 18, 2024 which confirmed the validity of the information received.
The PCA audit team discovered that lead ingots worth Rs. 1 billion, intended for export, had been illicitly removed, in clear violation of the EFS Rules, causing a duty tax evasion amounting to Rs337 million.
Further investigations revealed that the company had been misusing its “manufacturing status” to claim exemptions and concessionary tax rates at the import stage while engaging in local sales of the imported metal scrap.
This malpractice led to an additional duty tax evasion estimated at Rs141 million. In total, the fraudulent company has caused loss of Rs478 million to the national exchequer, that is recoverable in additional to surcharge amount worth Rs. 50 million.
The team also detected that the unit did not have sufficient installation facilities relating to heavy quantum of imports. The installed machinery contradicted with the goods imported and exported under EFS. This discrepancy raised serious doubts on the genuineness of exports made under the EFS. The accused importer was unable to justify manufacturing and export of said finished goods without having corresponding manufacturing facilities; thus indicating that exported goods were procured from the unregistered local market to justify consumption and export under the EFS regime.
The importer was also found involved in illegal imports under EFS on unauthorized HS Codes in violation of EFS rules. Furthermore, the substantial volume of imports was also found inconsistent with the importer’s financial standing, prompting PCA to initiate an investigation into possible money laundering activities.
The findings exposed M/s Deenar Industries Pvt Ltd. as a hub of extensive financial malpractice and fraudulent activities.
On December 23, 2024, the PCA South lodged an FIR for fiscal fraud under Section 32A of the Customs Act, involving Rs478 million. PCA teams have been mobilized to arrest the accused Asif Razak Deenar and Muhammaf Ali being the Directors of M/s Deenar Industries Pvt Ltd.
The accused Asif Razak Deenar has a tainted tax history. He is notoriously known to be a ringleader of tax evasion and money laundering syndicate in lead battery sector.
Previously, the accused has also been booked by IRS and FIA authorities due to his involvement fake/flying invoices and money laundering running into billions.
